To complicate matters for China, economic growth in the US is causing US interest rates to rise and the US dollar to strengthen. This, along with China's first current account deficit in 20 years, is negatively affecting China's financial account. Responding to the rising US interest rates with increases of its own is not a good option for China's central bank, because Chinese companies have a heavy debt burden that is slowing economic growth. Recently, a government official advised against increasing China's interest rate because of its impact on borrowing costs in China.

Question- Explain how "increasing China's interest rate" could affect its economic growth (paragraph 5). (An economic graph is recommended. Hint: Make AD/ASdiagram